Shares of Payoneer Global ($PAYO) soared intraday Tuesday following impressive third-quarter results that exceeded market expectations and a revised optimistic fiscal forecast, fueled by a robust business-to-business (B2B) segment. The company reported a revenue increase to $248.3 million for the quarter ending September 30, up from $208 million year-over-year, surpassing the average analyst forecast of $225.5 million as reported by Capital IQ.
When excluding interest income, revenue showed a 24% rise, totaling $183.1 million. This financial performance propelled shares of Payoneer to a 16% jump during Tuesday's trading. Earnings per share also saw significant growth, climbing to $0.11 from $0.03 in the previous year, outperforming analysts' expectations of $0.05.
Notably, transaction volume surged by 25%, primarily driven by a staggering 57% rise in B2B transaction volume, which reached $2.8 billion. Merchant services, specifically checkout volume, skyrocketed by 142% year-over-year, amounting to $153 million. John Caplan, Chief Executive, highlighted in a conference call that the company has achieved 44% B2B growth during the first three quarters of 2024, a stark contrast to the single-digit growth experienced in 2023.
"Within our B2B business, we're acquiring larger customers and expanding average transaction sizes," he noted. Payoneer has now posted seven consecutive quarters of accelerating volume growth, signaling a significant upward trajectory, as supported by Chief Financial Officer Bea Ordonez’s statement regarding the momentum the company is currently enjoying.
Consequently, management has raised its 2024 guidance to mirror the robust quarterly performance and enhanced expectations for growth and profitability for the fourth quarter. The new outlook anticipates full-year revenue between $950 million and $960 million, an increase from the previous estimate of $920 million to $930 million made in August.
Analysts are projecting revenue of $928.7 million for the current year. Additionally, the guidance for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) has been increased to a range of $255 million to $265 million, up from $225 million to $235 million. Caplan expressed confidence in the future of Payoneer’s B2B operations, stating, "We are in a position to capture the massive long-term opportunities globally, and our B2B business will continue to expand at a rate that outpaces our overall business growth." Price: 9.95, Change: +1.43, Percent Change: +16.78 $PAYO.